Al-Azem Palace is an outstanding example of richly decorated Damascene houses.

It was built by the Ottoman governor of Damascus Asaad Pasha Al-Azem in the middle of the 18th century as his personal residence.

The palace remained inhabited by Al-Azem family until the 1920s when, under the French Mandate, it was turned into the Institute of Oriental Studies.

Today, Al-Azem Palace hosts the Museum for Local Folklore.